Internet information services company InfoSpace.com Inc has agreed to pay a total of $759m in stock for wireless internet services company Saraide Inc and e-commerce infrastructure firm Prio Inc. Redmond, Washington-based InfoSpace will hand over 2.4 million shares of its common stock, currently worth about $358m based on Monday’s closing price, for Saraide. Prio shareholders will receive 2.7 million shares, worth roughly $401m.
Saraide, founded in 1998, is billed as the leading wireless internet services provider in Europe, Japan and Canada. InfoSpace will integrate the business with its existing wireless services and will own 80% of the combined company – which it claims will create the worldwide de facto standard for wireless portal platforms.
Prio, meanwhile, provides an e-commerce infrastructure that integrates online promotion technologies with merchants’ existing credit card processing capabilities. InfoSpace says its enhanced e-commerce infrastructure will target and deliver online promotions to consumers on their wireless devices or over the web. To take advantage of the promotion, the user can purchase the goods online, through a catalog or go to the retail store.
Both acquisitions are expected to close in the first quarter of 2000 and will be accounted for under the pooling of interests method of accounting, InfoSpace said. InfoSpace shares jumped $17.625 Monday to close at $149. รก
